POET Technologies: Revenue Inflection Nears As Market Opportunity Expands

2025-03-10 15:17:26 ET

Summary

• POET is expected to generate its first meaningful revenues this year from its partnerships with several leading optical module makers.
• POET is well-funded until it starts mass producing its engines, minimizing the risk of dilution in the medium-term.
• POET has the manufacturing capacity to meet around 8% of current demand for 800G and 1.6T transceivers.
• Hyperscalers’ increasing AI infrastructure investments are a promising sign for POET’s future growth considering that its partners are likely major suppliers to these hyperscalers.
• I’m rating POET as a strong buy with a price target of $20 by 2028, based on my base-case scenario, implying 455% upside from current levels.

As AI continues to evolve and push the boundaries of data processing, the need for high-speed optical modules is growing rapidly to enable the necessary high-speed communication required to develop AI models. One company that stands to benefit from this environment is POET Technologies Inc. ( POET ) which is attempting to revolutionize AI networking through its innovative photonics solutions that are crucial for data centers and cloud providers....

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